Vietnam’s Coffee Exports and Prices are Booming

Published 2022년 6월 29일

Vietnam is the largest coffee exporting country in Asia and the second largest in the world. The year 2022 has been strong for the Vietnamese coffee industry as exports in the first 5 months recorded a YoY increase of 23.2% in volume and 56.2% in value over the same period last year. They were primarily driven by lower production and supply chain bottlenecks in major producing countries like Brazil and Colombia. Export prices also recorded a YoY increase of over 20% during this period, following the path of domestic coffee prices. The outlook for the coffee industry remains strong, and it is anticipated that prices will continue to increase in the coming months.

The global coffee season starts in October and runs through September the following year. A recent report by the International Coffee Organization (ICO) showed that exports from Asian countries during the first seven months of the current coffee crop year (2021-2022) recorded a YoY increase of 9% to reach 28.06 million 60 kg bags. These high export volumes constituted volumes from Vietnam, India, and Indonesia. Among the three countries, the largest YoY increase was seen in the export volume of Vietnamese coffee during this period. According to statistics from the General Department of Customs, Vietnam exported 881.56 thousand mt of coffee in the first five months of 2022, which was worth about USD 1.98 billion. This is a YoY increase of 23.2% in volume and 56.2% in value over the same period last year. Increased exports from Vietnam were driven by lower production and supply chain bottlenecks in major producing countries like Brazil and Colombia.

In the first five months of 2022, Vietnam exported coffee to most of the main markets and recorded a sharp increase. Notably, coffee exports to many European markets recorded double-digit growth.In the first five months of 2022, exports to Belgium increased by 261% in volume and 349.7% in value; exports to the UK increased by 130.3% in volume and 178.6% in value. On the other hand, Vietnam’s export volume and value decreased sharply in countries like Japan, the United States, and the Philippines. In general, Vietnam's coffee exports grew at an "explosive" rate during this period amid recovering demands for coffee after the COVID-19 pandemic. Despite rising global and domestic coffee prices, Vietnam was able to export large volumes and expand its reach to large markets.

The price outlook for the coffee market remains strong. It is expected that the coffee price will move positively in the second half of June and through the second quarter. Additionally, the domestic coffee price has been on a rise in Vietnam for a while now, which has also started to be reflected in the export price of Vietnamese coffee. In the first 5 months of 2022, the average export price of Vietnam's coffee reached USD 2,250 per ton, which is a YoY increase of 23.9% over the same period in 2021. As we move towards the end of June, coffee prices in Lam Dong, one of the biggest coffee provinces, have continued to increase.

Coffee Prices in Lam Dong Region of Vietnam